12:54 pm, August 4, 2011
NEW car registrations were down 3.5 per cent in July, the lastest figures from the SMMT reveal.
131,634 were sold in the month, and the SMMT says the market is still in line with its expectations of 1.9m units this year.
The SMMT’s chief executive Paul Everitt said: ‘New car registration figures fell marginally by 3.5 per cent to 131,634 units in July, reflecting the impact of slower economic growth and subdued consumer confidence.
‘Robust demand in the fleet sector helped to bolster weaker private demand. While the coming months remain challenging, performance in the second half of 2011 is expected to keep the market on course to reach around 1.93 million units.’
Sue Robinson, director of the RMI National Franchised Dealers Association, added: ‘The 13th consecutive decline in the retail market proves that there is still a lack of consumer confidence. Rising household bills and declining disposable incomes are making consumers cautious about committing to big ticket items such as cars.
‘The market is highly competitive at the moment with the best deals being sought out by the consumer. Consumers are willing to buy if the price is right so there is a need for marketing and incentives that are attractive to the buyer. Also consumers need to be educated that a newer car may be cheaper due to better fuel economy and cheaper maintenance costs.’
